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Another month over and hopefully another step closer to turning the corner and getting out of the current shriveled up mortgage market we are all facing.

Yes, the normal culprits have been very active in the month of May with dual pricing being mortgage broker enemy number one. I am sure everyone has been through the same scenario with plenty of demand, limited supply and then when you finally sign up that mortgage application you find out a few days later that the client you have spent quality time with has just found the same deal 0.5 of a percentage point cheaper by going direct.

What are the chances of saving this client from the hands of a predator? Let us be honest, there is little chance of saving the client – if my mortgage were due now I would also go direct and save myself 0.5 of a percentage point, so no amount of good service is worthy of a 0.5 of a percentage point saving a month.

Let me get to the point. Dual pricing and limited supply is hurting the broking world, more so in May then in any of the last few months, according to colleagues I have spoke to within the industry. If you have not made those cost-cutting and tough decisions already, then you could be reading this article concerned about the U-turn in your income and the high costs you have, which until now, you have managed to pay every month.

Here are some basic principles that need to be considered if you have no already done so:

Create a cashflow forecast. It should take you no more than two to three hours in total and you will be able to predict very accurately how your bank balance will look and for how long it will remain that way (obviously with some assumptions).

Set targets for the advisers around alternative income streams such as insurance sales, and will referrals. Measure this on a monthly basis and set appropriate incentives to ensure more sales are made per client

Consider sub-letting any spare office space that you have on a short term all inclusive lease. When the market turns again then the office space will be available for expansion.

Negotiate with lead providers on their lead prices. Remember they are suffering the same as brokers are with too much demand and a diminished appetite for brokers to buy, I have seen some fantastic reductions of 60 per cent on lead prices within the last two months.

Use someone from the office to make calls to your recent clients that did not transact any business with you. The aim of this call is to see if they concluded their business elsewhere as they had suggested. You will be pleasantly surprised with the results.

Pull out your Profit & Loss statement from 12 months ago and look for where extra costs have been added. Systematically eliminate them where possible. You will find that you have increased on unnecessary expenses during the good times and that these can now all be cut back again.

Work your existing database - how many clients have you got stored away that are being sold financial products from your competitors on a daily basis? Email, call or write to them with an offer they cannot refuse.

Consider changing existing commission packages to your introducers. Are you paying your intros too much? Have a conversation with them and explain the current market situation and re negotiate terms and conditions with them – you will be surprised when they agree to different terms and you will kick yourself for not doing it earlier.

Are you getting the most out of every team member who works with you? Who said that your administrator cannot do follow up calls or even start calling that old database of yours with a carefully worded script.

Come up with a client referral scheme that is worth doing. Get someone calling clients from the last month to do a “customer satisfaction survey”. At the end of the survey, ask if the client was told about the referral reward scheme. If they do not know, then tell them.

Consider attending a mortgage broker workshop, there are plenty out there. I have, and have learnt many good points. My favourite being www.leeduncan.com. They cost money to attend but if you learn one good business idea then the course will be paid for many times over.

All that is left is to wish you all the best over the next few months. I hope that the above pointers help you get the most out of your clients and the team you work with. This may be my last article for a while as I am also concentrating on getting our business shaped and focused to ride out the storm so that we are well positioned to take advantage of the new mortgage market we will face in 2009.

Darren Pescod is managing director of The Mortgage Broker